The Asian Development Bank (ADB) has pledged to provide 212 million USD to continue a project that will improve water services to more than 3 million people, including 94,000 households in six cities and provinces of Vietnam that will receive piped water for the first time.

The funding is the second phase of a 1 billion USD loan framework approved in 2011 that will benefit an estimated 500,000 poor households. It will provide the infrastructure for water supply in Da Nang and Hai Phong cities, and Binh Duong, Dak Lak, Thua Thien-Hue and Quang Tri provinces.

Water supply companies will undertake subprojects, which include the construction of water plants, pumping stations, and transmission and distribution pipelines. Nine water companies will borrow from the second loan installment to prepare an investment project that will be financed by a subsequent installment.

According to Amy Leung, Director of the Urban and Water Division in ADB’s Southeast Asia department, clean water is crucial to development.

The Vietnamese Government recognises that access to clean water can support local economic development and improve the quality of life and health of people, she added.

In 2006, there was water supply to 92 percent of urban areas, but the level of service was uneven. With ADB financing, over 15 million people will receive an improved water service over the next 10 years.-VNA